Post by
topdop on Apr 04, 2019 3:07pm
Here's likely what's happening & what we haven't been told y
Sorry folks.
This looks more & more like the increasing risk here to us KAT minority shareholders - and IN THE ABSENCE OF EXPORT CLEARANCES for all of the radiometrically tainted, and future produced Co(OH)2 - is that Glencore simply instigates a "forced negotiation" with KAT, and because of our current large NEGATIVE CASHFLOWS, from this point, KAT will be contracted to provide all said Co(OH)2 to Glencore on Take & Pay contracts under very unfavorable terms. This would be a classic Glencore trading move. They have the capital to own it now - and wait for the export later - no product moves anywhere - and we get cents on the $ and have all that potential upside removed from our exposure.
These are my views only. Thanks for reading.
Comment by
topdop on Apr 04, 2019 5:15pm
I agree on most of your points & I do hope I'm proven wrong its just I don't trust them... The one point I disagree with is on valuations of "Cobalt companies". KAT's a copper miner. In fact, with its soon to be steady-state annual Cu production, it really should be valued as a top 20 mid-tier producer. All the rest is gravy.
Comment by
bigguy56 on Apr 05, 2019 3:17pm
Copper pricing has improved since Q4 based on the Copper Chart. COGS was really high... so if Q4 is representative, then maybe they are structurally unable to make money. But, I would expect revenues to improve next quarter. I thought also that they were in an investment mode in order to build plant capacity? Will that make a difference?